INVESTOR PRESENTATION - Metals and Mining Fund 2nd Quarter 2021
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Metals and Mining Fund
INVESTOR
PRESENTATION
2nd Quarter 2021
Metals and Mining Fund
WELCOME
DISCLAIMER OPPORTUNITY
CANADA
This presentation contains "forward looking information" within the meaning of applicable Canadian securities COMBINING SECURITY WITH LEVERAGE IN THE
legislation. Forward looking information includes without limitation, statements regarding the proposed use of the COMMODITIES BULL MARKET
proceeds of the financing, the receipt of all necessary approvals, demand and market outlook for metals, future
metal prices and treatment and refining charges, the size and quality of investee companies’ mineral resources,
progress in development of investee companies’ mineral properties, their future production and sales volumes,
their capital and mine production costs, the financial results of the company and the investee companies, the future
financial or operating performance of the company and investee companies, the prospective mineralization of the
investee companies’ properties, and the availability and likelihood of future acquisitions and dispositions. Generally,
forward looking information can be identified by the use of forward-looking terminology such as "plans", "expects"
or "does not expect", "is expected", "budget", "scheduled", "estimates", "forecasts", "intends", "anticipates" or "does
not anticipate", or "believes", or variations of such words and phrases or state that certain actions, events or results
"may", "could", "would", "might" or "will be taken", "occur" or "be achieved". Forward-looking information is subject
to known and unknown risks, uncertainties and other factors that may cause the actual results, level of activity,
performance or achievements of the company and its investee companies to be materially different from those
expressed or implied by such forward-looking information, including but not limited to: general business, economic,
competitive, geopolitical and social uncertainties; the actual results of current exploration activities; acquisition
risks; and other risks of the mining industry. Although the company has attempted to identify important factors
that could cause actual results to differ materially from those contained in forward-looking information, there
may be other factors that cause results not to be as anticipated, estimated or intended. There can be no assurance
that such information will prove to be accurate, as actual results and future events could differ materially from
those anticipated in such statements. Accordingly, readers should not place undue reliance on forward looking
information. The company does not undertake to update any forward-looking information, except in accordance
with applicable securities laws.
USA
This presentation does not constitute an offer to sell or a solicitation of an offer to sell any of the securities in the
United States. The securities have not been and will not be registered under the United States Securities Act of
1933, as amended (the "U.S. Securities Act") or any state securities laws and may not be offered or sold within the
United States or to U.S. Persons unless registered under the U.S. Securities Act and applicable state securities laws
or an exemption from such registration is available.
UK
This presentation is being made only to and is directed only at: Persons who have professional experience in The fund will purchase physical gold bullion with investor’s
matters relating to investments falling within Article 19(1) of the Financial Services and Markets Act 2000 (Financial
Promotion) Order 2005 (the "Order"); or high net worth entities, and other persons to whom it may otherwise subscription proceeds at prevailing market prices.
lawfully be communicated, falling within Article 49(1) of the Order (all such persons together being referred to as
"relevant persons"). The fund may also “contribute” certified physical gold at prevailing
market prices to subscribe for units in the fund.
SWITZERLAND
The domicile of the Fund is Bermuda. The Representative of the Fund in Switzerland is OpenFunds Investment
Services AG, with its registered office at Seefeldstrasse 35, CH-8008 Zurich, Tel +41 44 500 31 08, www.open- The fund will then seek up to 60% loan value against the physical
funds.ch. The Paying Agent in Switzerland is Società Bancaria Ticinese SA, Piazza Collegiata 3, 6501 Bellinzona,
Tel. +41 91 821 51 21, Fax. + 41 91 825 66 18, www.bancaria.ch. The distribution of Shares of the Fund in
bullion for proceeds to implement the strategy in Dragon Dynamic
Switzerland must be made exclusively to Qualified Investors. The place of performance and jurisdiction for the Metals and Mining Fund (a regulated Bermuda fund).
Shares of the Fund distributed in Switzerland is at the registered office of the Representative. Publications to Swiss
investors in respect of the Shares of the Fund are effected from the Representative.
01 I N V E S T O R P R E S E N TAT I O N 2nd Quarter 2021 02
Metals and Mining Fund
DR AGON
DYNAMIC
INVESTMENT ADVISORS
ADVISORS S.A.
WORLD CLASS
J. A. MICHIE PRECIOUS METALS
President of Dragon
Dynamic Advisors S.A. PRODUCERS
Email: jam@dragondynamicfp.com
Telephone: +1-617-922-1117
WELL-RESEARCHED
EARLY STAGE
J. A. Michie is an international group of ‘industry experts” who he MINING PROJECTS
businessman with extensive will utilize to gain valuable insights
experience in asset management, into investment decisions for the
metals and mining investments. His fund. The strategy is driven on a re-
family operated a successful gold emphasis on “value investing”.
mine in Canada in the 1980’s.
Over many decades he has developed
There will be three major focuses in
the fund: world class precious metal GLOBAL LEADERS IN
excellent contacts in the precious producers, well researched early
metals , junior resource development
and mining space.
stage mining projects, and global
leaders in emerging battery metals
EMERGING BATTERY
He has assembled a very successful
companies.
METALS COMPANIES
03 I N V E S T O R P R E S E N TAT I O N 2nd Quarter 2021 04
Metals and Mining Fund
FUND
S T R AT E G Y:
OPPORTUNITY & LEVERAGE SEEK
OPPORTUNIT Y
WEIGHTED RISK
AND RETURN
Investing in private and public junior to
mid-tier mining company M&A targets and
strategic short and long term positions in
North America markets.
Taking advantage of the opportunities that
exist in the metals exploration and mining
sector in precious metals, copper and other
battery related metals.
Lower Risk High Risk
Frequent access to direct investments into
exploration properties or private companies
prior to public listing provides leverage to
projects of merit. Focus on companies Identify companies Leverage opportunity
with strong technical with assets that are and technical skill
merits, cash flow and growing or advancing, sets to identify and
Expertise to conduct due diligence in-house proven management allowing for future position the fund
and to take a private company or project teams. Look for re-rating leading to into earlier stage
public if warranted. opportunities to significant returns. assets that have
acquire at compelling potential to grow
valuations. and fundamentally
shift current market
perception of assets.
05 I N V E S T O R P R E S E N TAT I O N 2nd Quarter 2021 06
Metals and Mining Fund
MANAGEMENT STRATEGY
Investment maximum of 20% of Fund NAV in a
single company.
Rebalancing the portfolio should see any
single investment grow to +60% of NAV.
Maintain a cash position of minimum 10% NAV.
Investments in private companies will include
a bonus payment for the the fund for a delayed
liquidity event.
Jurisdiction risk will be evaluated against
geological potential and anticipated returns.
07 I N V E S T O R P R E S E N TAT I O N 2nd Quarter 2021 08
Metals and Mining Fund
ADVISED BY INDUSTRY EXPERTS
Complimentary skill set that spans the globe and covers the LEO HATHAWAY
spectrum of metals. A strong mix of technical, financial and P.Geo
corporate skills underpin the Dragon team’s expertise.
Chief Geologist, Lumina Group
DR. ANDREW RAMCHARAN
PhD, P.Eng, FAusIMM
09 I N V E S T O R P R E S E N TAT I O N 2nd Quarter 2021 10
Metals and Mining Fund
LEO HATHAWAY LUMINA COPPER
P.Geo
Project Evaluation Expert EXPERIENCE
Leo’s passion is wealth creation in the
exploration and mining industry and In early 2004 Mr.
has been involved in creating more than Hathaway joined Lumina
$2B in value. Copper as VP Exploration
during the Company’s NORTHERN Galeno–9.5Blbs Cu
project acquisition PERU COPPER Pashpap–1.4Blbs Cu
Leo initiated and continues to direct a
phase. He managed Sold Jan 2008 $455M
private copper exploration company
in Poland that raised $100M privately key technical aspects of
Mr. Hathaway is a highly respected GLOBAL Relincho–9.9Blbs
and also recognized the value in Odin acquisitions, exploration
geologist who graduated from Plymouth COPPER Sold Aug 2008 $425M
Mining, of which he participated in and development
University with a BSc. (Hons) in geology
and an MSc. in Mineral Exploration from acquiring 80% of for $5M. The re-
the Royal School of Mines, Imperial named company, Lumina Gold (And Lumina Copper was
SpinCo Luminex), is now valued at more “star-burst” into four LUMINA TacaTaca–2.2Blbs
College, London. He obtained a P. Geo
than $220M combined. daughter companies in COPPER CORP Sold Aug 2014 $470M
from the Association of Professional
Geoscientists of Ontario and is a partner 2006.
of the Lumina Group. Leo was a partner and advisor
to Lumina Capital LP, a 5-year All four companies REGALITO Regalito–7.2Blbs Cu
Prior to his involvement with the Lumina private fund (initiated with $30M and were acquired between COPPER Sold May 2006 $137M
group of companies he spent 10 years “liquidated” for $240M), amongst the 2006 and 2010 leaving
working for Inmet Mining where he investments made were; e.g. Ventana one remaining project,
worked on the Antamina feasibility study Gold in Colombia, 3.5Moz Au (sold for TacaTaca.
in Peru, was involved in global evaluations $1.54B). LUMINA Sold Sep 2011 $66M
ROYALTY CORP.
and managed exploration programs in A private company
Latin America, Europe and Australia. Mr. At Lumina he spent 11 years managing
combining royalties on
Hathaway spent 8 years living in Latin technical aspects of the Lumina Copper
4 of the projects was
America and is fluent in Spanish. and daughter companies, five major
sold in 2011 to Franco-
transactions totaling $1.6B LUMINA Hushamu–1.4Blbs Cu
Nevada.
He has managed and evaluated a wide ROYALTY CORP. Casino –4.7Blbs Cu
range of projects in various commodities Management and evaluation experience Sold Dec 2006 $28M
combine for a deep understanding of TacaTacawas acquired by
in over 50 countries at all stages: First Quantum in 2014.
grassroots, advanced, developed, and the ingredients for a successful mining
production. investment at all scales..
11 I N V E S T O R P R E S E N TAT I O N 2nd Quarter 2021 12
Metals and Mining Fund
DR. ANDREW J . PROJECT EVALUATION
RAMCHARAN EXPERT
PhD, P.Eng, FAusIMM
Industry Expert
A strong mix of technical, financial Dr. Ramcharan has a deep
and corporate skills underpin Dragon understanding of the necessary
Dynamic’s expertise components of a successful mining
investment project at all scalable
levels, due in part to his experience in
Dr. Andrew J. Ramcharan (PhD, P.Eng, Dr. Ramcharan’s objectives and goals management and project evaluation.
FAusIMM) has extensive knowledge, are value creation in the mining
experience and contacts in the mining industry, in which he has been
industry. His experiences include due instrumental in creating more than He has previously worked in Colorado
diligence in over 300 projects globally and $4B in value at Resource Capital Funds generating
Most recently, Dr. Ramcharan’s project evaluations for investment
achievements include his Senior a wide range of commodities. A graduate
of both the Colorado School of Mines and strategies, and with SRK Consulting
Management position at ROSCAN Gold preparing numerous NI43-101
Harvard Continuing Education Business At IAMGOLD he managed all
(ROS), where he was instrumental in reports for multiple commodities and
School, Dr. Ramcharan brings a unique technical aspects of the Company’s
increasing their market valuation from financial analysis.
skillset to the table from a technical and M&A Strategy and IAMGOLD’s
$15M to over $180M over the course
a financial standpoint. He will provide valuation grew to over $4B.
of just 12 months. He spearheaded a
fundraising campaign at ROSCAN which invaluable insight for the Investment
Manager. Dr. Ramcharan has evaluated projects
raised $35M, in addition to offering Dr. Ramcharan is a highly at all stages: grassroots, advanced,
technical and financial assessments of regarded and respected Bay Street development and production across
ROSCAN’s gold project on site in Mali. He has previously assisted directly in
putting 4 major mines in production Executive, with a strong educational a wide range of commodities and in
while at Dynatec and IAMGOLD, and background and a well-connected over 60 countries.
Prior to joining ROSCAN, Dr. Ramcharan network in the mining industry
held a Senior Management position has been involved in two takeovers worth
$800M and $1B. Furthermore, he has globally.
at IAMGOLD and Sprott, where he
assessed investments and was helped to facilitate the sale process of two
directly responsible for facilitating major projects with a combined value of
over $400M. He is a member of the Professional
and deploying $500M in investments. Engineers of Ontario, in addition to
He has also lectured extensively at being a Fellow of both the Australian
the University of Toronto on the topics Institute of Mining and Metallurgy
of Mineral Resource and Reserve (FAusIMM) and the South African
Estimation. Institution of Mining and Metallurgy
(FSAIMM)
13 I N V E S T O R P R E S E N TAT I O N 2nd Quarter 2021 14
Metals and Mining Fund
INVESTMENT TERMS FUND SERVICE PROVIDERS
Legal Counsel Company Secretary
Minimal Participation Amount
Conyers Dill & Pearman. Conyers Corporate Services
CHF 100'000 www.conyers.com www.conyers.com
(extra participations as of CHF 50'000)
Auditors Escrow Bank
No Redemption Charge After 2 Years
Up to 15% before that Grant Thornton
(Cayman) Limited
Escrow & Custody:
Northern Trust
www.grantthornton.ky www.northerntrust.com
Subscription/Redemption Administrator Swiss Distribution & Legal Rep.
QUARTERLY
Centaur Fund Services OpenFunds
(Bermuda) Limited Investment Services AG
Management Fee
www.centaurfs.com www.open-funds.ch
2% of total AUM NAV Calculation Agent Registrar and Transfer Agent
Performance Fee & Hurdle Rate Structure
Centaur Fund Services Centaur Fund Services
20% if above 6% hurdle rate (Bermuda) Limited
www.centaurfs.com
(Bermuda) Limited
www.centaurfs.com
Bullion purchase, storage and Securities custody
High Watermark Lombard loans
PERPETUAL
Banque Heritage Ltd Canaccord Genuity Group Inc
www.heritage.ch www.canaccordgenuity.com
15 I N V E S T O R P R E S E N TAT I O N 2nd Quarter 2021 16
Metals and Mining Fund
APPENDIX
Investment Opportunity Analysis
www.dragondynamicfp.comMetals and Mining Fund
ADVISED BY THE CASE FOR GOLD GOLD MINERS BULLISH
PERCENT INDEX
Due to ever
Gold has become an Major mining companies will
increasing
undervalued resource due have an increased appetite
government
to short-term competition for merger and acquisition
deficits caused
for investment: S&P stocks, of smaller companies with
in part by the
marijuana stocks and quality assets. Additional
COVID-19 crisis,
cryptocurrency to name increased real and option
previous and
a few. value of gold exploration and
recently enacted
development assets, both
fiscal policies
public and private.
the demand for
physical gold
is increasing
dramatically. Global geopolitical instability Medium to high grade gold
Bank of America and the reality of international assets in low to medium
recently trade and currency wars will risk jurisdictions with low
forecasted the have a positive effect on the technical risk will be ideal
price of gold gold price. prospects and preferentially
bullion to rise acquired by the fund.
above USD $2000
per ounce in 2021.
19 I N V E S T O R P R E S E N TAT I O N 2nd Quarter 2021 20Metals and Mining Fund
US PRIVATE INVESTMENT TIME FROM DISCOVERY TO
IN MINING EXPLORATION PRODUCTION INCREASING
FIXED INVESTMENT IN MINING EXPLORATION DECLINING METAL SUPPLY
SHAFTS & WELLS IN USD BILLIONS
Peak of the
500 commodities
boom
Declining metal supply
400 Increased Risks of Production : Social Environmental Financial Political Technical
30
Average # of Years from Discovery to Production
300 25 Today
20
200
15
10
100
5
0 0
2014*
2015*
2016*
2017*
2018*
2019*
1985
1986
1987
1988
1989
1990
1991
1992
1993
1994
1995
1996
1997
1998
1999
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
1958
1960
1963
1965
1968
1970
1973
1975
1978
1980
1983
1985
1988
1990
1993
1995
1998
2000
2003
2005
2008
2010
2013
2015
2018
2020
Source: Bureau of Economic Analysis
21 I N V E S T O R P R E S E N TAT I O N 2nd Quarter 2021 22Metals and Mining Fund
MANY TRENDS INDICATE G O L D S U P P LY: PRODUCTION DECLINE
A BULL MARKET FOR GOLD INDICATED BY DECLINING
DISCOVERIES
PEAK GOLD PRODUCTION IN 2015?
Grassroots + 75% of late-stage exploration
3-year running avg Au discovered (moz)
150 Peak Discovery(1) $7,200
125 $6,000
100 $4,800
75 $3,600
budgets (US$M)
50 $2,400
25 $1,200
0 $0
1990 1993 1996 1999 2002 2005 2008 2011
Grassroots + 75% of late-stage exploration
3-year running avg Au discovered (moz)
150 Peak Discovery(1) $7,200 100
Peak Production(2)
125 $6,000 95
Annual Production (moz)
100 $4,800 90
75 $3,600 85
budgets (US$M)
50 $2,400 80
25 $1,200 75
THE AMOUNT OF NEGATIVE Source: Murenbeeld& Co.,
LBMA, WSJ, Bloomberg, World 0 $0 70
YIELDING DEBT CONTINUES Bank, McKinsey Global Institute 1990 1993 1996 1999 2002 2005 2008 2011 2003 2006 2009 2012 2015 2018 2021 2024
TO RISE, CONSEQUENTLY THE
PRICE REMAINS STRONG.
Source: SNL Metals Economics Group;Goldcorp
Source: Concensusestimates, Includes CPM Group, GFMS
and Metals Focus 23
23 I N V E S T O R P R E S E N TAT I O N 2nd Quarter 2021 24Metals and Mining Fund
G O L D S U P P LY: PRODUCTION DECLINE G O L D S U P P LY: HIGH GRADING OF
INDICATED BY DECLINING DEPOSITS IS DEPLETING
DISCOVERIES GOLD RESERVES
DISCOVERY OF LARGE SCALE DEPOSITS HAVE BECOME APPROXIMATELY 60% OF MINES HAVE BEEN MINING ABOVE
INCREASINGLY MORE DIFFICULT FOR JUNIOR GOLD THEIR RESERVE GRADE, ACCELERATING RATES OF DEPLETION.
COMPANIES IN RECENT YEARS. Mill head grade > Reserve grade
Mill head grade < Reserve grade
Mill head grade = Reserve grade
Gold discovered, 1970-2017, million ounces Au Mill head grade 2016, percent Rese
Moderate (0.1-1 Moz) Major (1-6 Moz) Giant (>6 Moz)
790
2007 20
Source: SNL Metals Economics Group; Goldcorp
Source: Concensus estimates,RESERVES
Mill head grade > Reserve grade
BY MAJOR
Includes CPM GOLD and
Group, GFMS COMPANIES HAS DECLINED 26%
Metals Focus
DROP IN Mill head grade < Reserve grade SINCE 2012 AND ARE NOW BELOW 2007 LEVELS 24
Mill head grade = Reserve grade
E X P L O R AT I O N Mill head grade 2016, percent Reserves by major companies, 2007-17, million ounces Au
EXPENDITURES
967
959
26%
898
860
849
830
818
790
766
744
713
ounces Au
) Giant (>6 Moz)
Source: SNL Metals Economics Group;Goldcorp
Source: Concensusestimates, Includes CPM
Group, GFMS and Metals Focus
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017
25
25 I N V E S T O R P R E S E N TAT I O N 2nd Quarter 2021 26Metals and Mining Fund
THE CASE FOR SILVER SILVER SUPPLY
Mine production annually (oz silver)
887,4
893
856,9
868
867
823,7
790,8
01/01/2016 01/07/2016 01/01/2017 01/07/2017 01/01/2018 01/01/2018 01/01/2019
2012 2013 2014 2015 2016 2017 2018
Silver market set to close gap fast
Silver usually trades at a In bullish markets
and leveraged silver companies are
ratio of 60:1with gold that gap can close to 40:1 Production shows modest to flat growth through 2019 and beyond as exploration shortfall impacts future supply
in short supply.
27
26
27 I N V E S T O R P R E S E N TAT I O N 2nd Quarter 2021 28Metals and Mining Fund
SILVER DEMAND THE CASE FOR COPPER
DEMAND FOR SILVER IS ONLY INCREASING AS AN INVESTMENT WHEN THE US DOLLAR TURNS
TOOL AND THROUGH COMMERCIAL APPLICATIONS FOR SILVER
28
Demand for silver coins soaring in last two years in pace with growing demand in
solar and automotive
29
29 I N V E S T O R P R E S E N TAT I O N 28 2nd Quarter 2021 30Metals and Mining Fund
COPPER SUPPLY COPPER
DEMAND:
DRIVEN BY ECONOMIC
DEVELOPMENT
NON-OECD DEMAND INCLUDES CHINESE
GROWTH FORECAST AT DEMAND GROWTH
+3.6% +2.6%
PER ANNUAL TO 2032 O.A.TO 2030 AND BEYOND
PRODUCTION AND GRADE DECLINE INTENSITY OF Copper intensity expected to increase in China 2
COPPER USE IS kg/capita
EXPECTED TO 40
Copper production from Open Pit and Underground mines
INCREASE IN
20,000 2.5
CHINA 30
2.0
Average grade (Cu%)
15,000
Production (Mt)
1.5 20
10,000
1.0
10
5,000
0.5
0
0 0.0 0 20 40 60
2000 2005 2010 2015 2020 2025 2030
GDP per Capita, US$’000 2010 PPP1
Underground copper grade Underground copper production US, 1960-2010 Japan, 1960-2010 Germany, 1960-2010
Open pit copper grade Open pit copper production Korea, 1971-2010 China, 1980-2015 India, 1980-2015
31
31 I N V E S T O R P R E S E N TAT I O N 2nd Quarter 2021 32Metals and Mining Fund
SHARES IN PRECIOUS METALS U.S. SMALL CAPS
COMPANIES ARE POISED TO RELATIVE TO LARGE CAPS
MOVE HIGHER SINCE (1925)
Norma lized: Dec- 1925=10 0 Uptrend: Sma ll ca ps outperform
Sha ded a rea is U.S. Recession Down Trend: La rge ca ps outperform
500
450
400
s
350
300
250
s
200
150
100
50
0
Dec-25
Dec-30
Dec-35
Dec-40
Dec-45
Dec-50
Dec-55
Dec-60
Dec-65
Dec-70
Dec-75
Dec-80
Dec-85
Dec-90
Dec-95
Dec-00
Dec-05
Dec-10
Dec-15
Dec-20
s Performance based on Ibboston SC TR index from 1925 to 1978 & Russell 200 (TR) thereafter.
Source: Scotiabank GBM Portfolio Strategy, Morningstar, Shiller
d
32
33 I N V E S T O R P R E S E N TAT I O N 2nd Quarter 2021 34CONTACT Metals and Mining Fund CONTACT: J. A.Michie TELEPHONE: +1-617-922-1117 EMAIL: jam@dragondynamicfp.com www.dragondynamicfp.com
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